HOMI - Hotel Outsource Management International, Inc. Presents Year 2007 Results

NEW YORK--(Business Wire)--
Hotel Outsource Management International, Inc. ("HOMI") (NASDAQ:
HOUM.OB) presented its consolidated financial results for the year
ended December 31, 2007.

Financial Results for the Year Ended December 31, 2007

Revenues for the year ended December 31, 2007 reached
US$3,775,000. This represents a 15.8% or US$514,000 increase, compared
with revenues of US$3,261,000 in the year ended December 31, 2006. The
increase in revenues was generated partly by a significant improvement
in occupancy rates in some hotels in which HOMI operates, resulting in
increased use of the minibars operated by HOMI, and partly by exchange
rate fluctuation, since a large portion of HOMI's sales is denominated
in non-U.S. currencies, most of which have gained strength against the
U.S. Dollar.

Gross Profit in 2007 was US$1,562,000, compared with US$1,304,000
in 2006, representing an increase of 19.8% or US$258,000. Such
increase is related to HOMI's increase in revenues, and accordingly,
as a percentage of revenues, gross profit slightly increased from 40%
to 41.4%.

Operating Loss for the year ended December 31, 2007 was
US$278,000, compared with US$170,000 in the year ended December 31,
2006. This results mainly from an increase in Selling and Marketing
expenses, primarily as a result of new marketing activities related to
the HOMI(R) 336 computerized minibar system, and an increase in
General and Administrative expenses, due to the fact that many of
HOMI's local operators' fees are computed as a percentage of revenues
and have increased since 2006. In addition, during 2007 HOMI retained
additional consulting services, expanded its financial department and
recorded an increase in management compensation which was in part
based on the company's financial results.

Net Profit for the year ended December 31, 2007 was US$450,000,
including onetime gains in the amount of US$752,000, resulting
primarily from a gain of approximately US$472,000 due to the purchase
of the 30% of HOMI USA, Inc. previously held by Bartech Systems
International, Inc. ("BSI"), as well as a gain of US$270,000 from the
sale of HOMI's interest in BSI to a third party.

Even when the onetime gains are ignored, HOMI still succeeded in
preventing any increase in net losses in 2007 (US$302,000, compared
with a net loss of US$303,000 in 2006), despite a significant increase
in operating expenses largely due to HOMI's new, independent
manufacturing and marketing activities.

Cash and Cash Equivalents as of December 31, 2007 were
US$2,348,000, compared with US$609,000 on December 31, 2006.

Total Shareholders' Equity as of December 31, 2007 was
US$6,008,000, compared with US$4,951,000 on December 31, 2006.

Recently, HOMI successfully completed its first operational
installation of the HOMI(R) 336 computerized minibar system, at the
luxury Sheraton Moriah hotel in Tel-Aviv, Israel, and announced the
signing of agreements with another 6 hotels in Europe and Israel.

Financial Results for the Fourth Quarter of 2007

Revenues for the fourth quarter of 2007 reached US$1,032,000,
compared with US$922,000 in the fourth quarter of 2006, representing
an increase of 11.9%.

Gross Profit for the fourth quarter of 2007 was US$480,000,
compared with US$342,000 for the fourth quarter of 2006, representing
an increase of 40.4%.

Operating Loss for the fourth quarter of 2007 was reduced to
US$18,000 compared with an operating loss of US$104,000 for the fourth
quarter of 2006.

Net Loss for the fourth quarter of 2007 was reduced to US$4,000,
compared with a net loss of US$65,000 for the fourth quarter of 2006.

Mr. Jacob Ronnel, HOMI's President and CEO, commented: "We are
pleased with our 2007 and fourth quarter results, which show our
growth in top and bottom line. We anticipate that 2008 could well be a
significant year for HOMI.

We are now manufacturing our own range of advanced, computerized
minibars (the HOMI(R) 336) which we have developed on the basis of our
expertise and experience in the outsource operation of computerized
minibars. As a result, we are no longer dependent on other
manufacturers' equipment and marketing. Instead, we are investing in
HOMI's own sales and marketing infrastructure, which is already
beginning to show results.

We have already signed a number of agreements in which hotels have
ordered installation and outsource operation by HOMI of our HOMI(R)
336 product, and have completed an installation at one large hotel. We
plan to enter into additional such agreements and perform more such
installations during 2008.

Our analysis and experience suggest that the HOMI(R) 336 will be
an attractive solution to upscale hotels, as well as mid-market
hotels, which we believe will open up new markets for HOMI(R)
products.

We believe that 2008 will be a year in which our novel HOMI(R) 336
product, and other HOMI(R) equipment, soon to be introduced, will
penetrate the market. In 2008, we plan to continue to strengthen our
sales and operations activity, in order to meet what we anticipate
will be increased demand for HOMI(R) products and outsourcing
services.

Based on the agreements we have already signed and the response
that we have received from the market, we plan to set ourselves the
target of installing a sizeable quantity of the HOMI(R) minibars this
year, so that by the end of the year 2008, we would like HOMI to be
operating some 30% more minibars than at the end of 2007.

It is our intention that 2009 will again show a significant
increase in the market for HOMI's new computerized minibars, and for
HOMI(R) services."

About HOMI

HOMI was incorporated under the laws of Delaware in 2000. HOMI and
its subsidiaries are engaged in the distribution, marketing and
operation of computerized minibars in major branded hotel chains
located in the United States, Europe, Australia, Israel and South
Africa, and in the development and manufacture of a new range of
computerized minibar system.

HOMI, through its subsidiaries, manages and operates approximately
7,800 computerized minibar systems at 19 hotels and offers a selection
of business models, including rental and full outsourcing. In the full
outsourcing model, HOMI's revenues are primarily derived from the
operation of new or already installed minibars, through its outsource
operation program. HOMI now plans to offer rental services as well,
where it will lease its proprietary computerized minibars to hotels,
either with, or without, outsource operations services.

HOMI has recently completed the development of its new,
proprietary computerized minibar system: the HOMI(R) 336, which is the
first such system to be developed and manufactured by the company.
HOMI has applied for patent protection on various features of the new
system and has recently completed first major installation of the
HOMI(R) 336 system.

Forward-Looking Statement

This press release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. These statements relate to future events or to the company's
future financial performance. In some cases, forward-looking
statements can be identified by terminology such as "may", "will",
"should", "expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential" or "continue" or the negative of these terms
or other comparable terminology. These statements are only predictions
and involve known and unknown risks, uncertainties and other factors
that may cause the company's or out industry's actual results, levels
of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.
Although the company believes that the expectations reflected in the
forward-looking statements are reasonable, it cannot guarantee future
results, levels of activity, performance or achievements. Except as
required by applicable law, including the securities laws of the
United States, the company does not intend to update any of the
forward-looking statements to conform these statements to actual
results. The company's financial statements are stated and prepared in
US Dollars and are prepared in accordance with accounting principles
generally accepted in the United States of America. As used in this
report, the term "HOMI" means Hotel Outsource Management
International, Inc. The terms, the "Company", "we", "us", "our" means
Hotel Outsource Management International, Inc. and its subsidiaries,
unless otherwise indicated.

Hotel Outsource Management International, Inc.
Linor Labandter, CPA (Isr.), LL.B., +972 3 6992368
CFO
LinorLabandter@my-homi.com
or
KM Investor Relations
Meirav Bauer, + 972 3 5167620
Account Director
meiravb@km-ir.co.il

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